FINANCE and Investment Promotion Minister, Mthuli Ncube has announced the beginning of compensation payments to farmers under the US$20 million facility set aside in the 2024 National Budget.
The compensation exercise targets investors protected by the Bilateral Investment Protection and Promotion Agreements (BIPPAs) whose investments were affected by the Land Reform Program in 2000.
The claimants under the category are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia.
"I am pleased to announce that the compensation process has begun. We believe that this process is crucial for building Trust, honoring commitments and ensuring consistency with our Constitution as we address Zimbabwe's debt challenge.
"The payments towards the compensation of investors under BIPPA Protection began in the second week of January 2025. Payments is being made to the claimants' bank accounts of choice," said Ncube.
The envoys of Germany, the Netherlands and Switzerland jointly welcomed the announcement describing it as a giant step bringing a sense of closure among the affected parties.
"The framework established by the Government of Zimbabwe leading to the full compensation of affected BIPPA farmers protected by BIPPA Agreements is indeed a historic achievement. We commend the government's allocation of funds in the National Budget as of 2024 to make the compensation a reality.
"Several affected investors have received initial payouts, and an emerging sense of closure exists. It marks a significant milestone and we consider it a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe," the ambassadors said in a statement.
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The President of the African Development Bank (AfDB) and the champion of the Zimbabwe Arrears clearance and Debt resolution, Dr Akinwumi Adesina hailed the milestone achievement and implored more development partners to support the initiative.
"The compensation demonstrates the government's goodwill and commitment to building trust in the process and improving in the country. The progress Zimbabwe has made, the commitment and resilience it is showing, calls for support from development partners to facilitate the country's efforts in implementing ongoing reforms and to provide the much-needed cushion to particularly the vulnerable members of the population," he said.
In 2022, the Government of Zimbabwe established a Structured Dialogue Platform with all its creditors and development partners to institutionalize engagement on economic and governance reforms to underpin the Arrears clearance and Debt Resolution Process.
